CBI | Market Intelligence Product Factsheet Cloves in Germany | 1

CBI Product Factsheet:

Valves in Italy

CBI | Market Intelligence Product Factsheet Valves in Italy| 2

Introduction

Italy is the leading producer of valves in Europe and offers the second-largest valve market (after Germany). The country is

characterised by a relatively large number of domestic manufacturers. Manufacturers of valve parts can find very good short-

term and medium-term subcontracting opportunities with Italian valve producers. In some cases, exporters from developing

countries could also supply finished valves to these manufacturers. Another good option for exporters from developing

countries would be to target specialised distributors. Valves produced for the European market must be designed and

manufactured with an emphasis on low emissions, safety, simplicity of maintenance, ease of operation and, above all, long

and reliable service life. In all cases, exporters from developing countries should focus on just a few specialised valves within

their range of products. Finally, the pricing strategy should be very competitive.

Product description

Valves are applied in almost all industrial production processes in which liquids are used. The valves covered in this survey are industrial devices that regulate, direct or control the flow of fluids (gases, liquids, fluidised solids or slurries) by opening, closing or partially blocking various passages. The water and wastewater industry is the largest sector of application for valves, in addition to the chemical-processing industry, the food-processing industry (including beverages) and the oil and gas industries. One chapter in the CN nomenclature refers to valves and valve parts: Chapter 8481. This chapter of codes was selected for this survey. The classifications are presented in Table 1. Note that several of the codes in Chapter 8481 have been excluded from the selection, as they relate to applications other than the process industry, including pneumatic (including tyres), hydraulic and sanitary applications. Table 1 also shows the Prodcom codes used for the production and demand statistics for valves and valve parts. Table 1: Selected products, based on CN and Prodcom nomenclature

Subsector and

product group

CN code Prodcom code Description

Valves

check valves 848130-91/99 29131172 check valves

safety valves 848140-10/90 29131176 safety or relief valves

pressure-

reducing valves

84811005 29131134 pressure-reducing valves combined with filters or

lubricators

84811019 29131135 pressure-reducing valves of cast iron or steel

84811099 29131139 pressure-reducing valves of base metal

process control

valves

84818051 29131313 thermostatically controlled process valves

84818059 29131315 process control valves

gate valves

84818061 29131333 gate valves

84818063 29131335 gate valves

84818069 29131337 gate valves

globe valves

84818071 29131353 globe valves of cast iron

84818073 29131355 globe valves of steel

84818079 29131357 globe valves

diaphragm

valves

84818087 29131377 diaphragm valves

other valves 84818099 29131380 valves not defined elsewhere

parts thereof 84819000 29132000 parts of valves

a range of

valves (quarter

turn)

84818081 29131373 ball and plug valves

84818085 29131375 butterfly valves

Source: Globally Cool, based on CN and Prodcom Nomenclature (2013)

The valve specifications required by Italian buyers are described below. These specifications include requirements pertaining to the material used, processing steps, documentation and packaging. Illustrations 1–4 display examples of valves sold in Italy, and Illustration 5 provides an example of valve bodies packaged for transportation.

Material and design

The material used depends upon the valve’s application. Materials range from nodular cast iron or alloy nodular cast iron for use in water and wastewater processes to stainless and heat-resistant steel in the chemical and power-generation industries. Designs are in line with customer specifications.

CBI | Market Intelligence Product Factsheet Valves in Italy| 3

Documentation

Valve importers require associated reports about the quality and specification of the material used, registration of critical process parameters and test reports, along with traceability reports for the batches of products manufactured.

Labelling and packaging

Valves are individually packed in crates or boxes, generally made of wood. The packaging depends upon the characteristics of the valve, its level of treatment (100% treated valves require high-protection packaging in order to prevent breakage) and its size. Plastics or coatings are also used for additional packaging purposes. The standard of the valve should be imprinted on the rim, as well as the size, batch number and materials. Highly specialised valves have unique numbers, as they are tested individually.

Packaging is always labelled, not only for the purposes of identification during transport, but also to indicate the quantity,

weight, the products themselves and the producer’s name. In addition to general packaging requirements (see

‘Requirements’), customers are likely to have their own additional packaging requirements and preferences. In most cases,

the packaging and labelling requirements are included in the customer’s specifications.

Quality and quantity

The quality standards of individual Italian companies are regarded as being lower than those in Northern Europe, but higher than those in Central and Eastern Europe. These quality standards have an impact on many aspects, including the finishing and painting of the product (the visual-optical qualities or the appearance of the valve), the packaging requirements and the documentation of accessories. Order volumes follow the customer’s standards and requirements. As a general guideline, transportation of standard valves or valve parts from developing countries to Italy is viable only for full container loads.

Illustration 1: Full-bore valve Illustration 2: Lubricator stop valve

Illustration 3: Water-pressure reducing valve Illustration 4: Thermostatic tempering valve

CBI | Market Intelligence Product Factsheet Valves in Italy| 4

Illustration 5: Example of valve bodies ready for transport

What is the demand for valves in Italy?

Figure 1: Imports of valves to Italy by main origin (2010–2014), in € million

Source: Trade Map (2015)

For some time, Italy has been in fourth place as an importer of valves in Europe, behind Germany, the

United Kingdom and France. In 2014, it accounted for 8% of all imports into Europe.

Import values have been growing steadily since 2010, with the exception of a slight dip in 2013.

0

200

400

600

800

1000

1200

2010 2011 2012 2013 2014

Europe Developing Countries Rest of the world

CBI | Market Intelligence Product Factsheet Valves in Italy| 5

Imports increased between 2010 (€1.1 billion) and 2014 (€1.5 billion), with an average annual growth

rate of 6.5%.

From a product perspective, valve parts (€409 million) accounted for 28% of total imports.

At 21%, imports from developing countries as a share of total imports are much higher than the

European average (14%). Over the next few years, this share is expected to remain relatively stable.

With regard to the share of imports from developing countries, the best-performing valve types are

valve parts.

The import of valves is expected to exhibit slight growth in the next few years, in the range of 0%–2%.

Figure 2: Leading suppliers of valves to Italy (2014), € million

Source: Trade Map (2015)

Although most of the leading suppliers are from developed countries, several developing countries

appear among the 12 leading suppliers: China (2nd position at €242 million) and India (11th position at

€27 million).

The leading positions of Germany, France and the United Kingdom are the result of the presence of

production facilities owned by the leading global and national valve manufacturers in these countries.

Several other developing countries also export valves to Italy, including Tunisia (€9 million), Turkey (€6

million), Bosnia and Herzegovina, Mexico, Brazil, Thailand, Nigeria, Egypt and Angola, (between €1-4

million per country).

The composition of suppliers from developing countries is not expected to change substantially in the

next few years.

0

50

100

150

200

250

300

350

400

450

Tips:

Benchmark your company against your peers from China and India, as well as against those from

other countries that export to Italy. Several factors should be considered, including market segments

served, perceived price and quality levels, and countries served. One source that can be used to find

exporters of valves by country is the ITC Trade Map.

Italian buyers are evidently aware of and have found suppliers in developing countries other than

China. Such perceived openness to other developing countries obviously implies the presence of

opportunities for developing countries. Be sure that Italian prospects can find your website when

searching the web for suppliers. In addition, be sure that you are listed in relevant databases,

including the Valve World Buyers’ Guide.

CBI | Market Intelligence Product Factsheet Valves in Italy| 6

Figure 3: Exports of valves from Italy by main destination (2010–2014), in € million

Source: Trade Map (2015)

Italy exports a great many valves, due to its dominant role as the largest producer of valves (and valve

parts) in Europe.

Italian exports exhibited strong growth in the 2010–2014 period. On average, exports have increased by

8.5% per year (€6.0 billion in 2014), particularly due to the strong performance of exports to the USA,

Saudi Arabia, France and South Korea.

Together, the pattern over the 2010–2014 period and the pattern of Italian imports (Figure 1)

demonstrate Italy’s participation in the global trade of valves and valve parts.

Almost one-third of Italian exports are destined for developing countries. This presents an interesting

opportunity for manufacturers of valves and valve parts in developing countries. Suppliers who are able

to prove their ability to meet product specifications can also supply these valves and valve parts. China

is the leading developing-country destination, followed at quite some distance by Turkey, Thailand, Iraq,

India, Kazakhstan, Brazil, Algeria, Egypt and Mexico.

Figure 4: Production of and local demand for valves in Italy (2010–2014), in € million

Source: Prodcom (2015)

0

500

1.000

1.500

2.000

2.500

2010 2011 2012 2013 2014

Europe Developing Countries Rest of the world

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

2010 2011 2012 2013 2014

Production Apparent demand

CBI | Market Intelligence Product Factsheet Valves in Italy| 7

Italy is Europe’s leading producer of valves, ahead of Germany. The country represented 29% of the

total European production output in 2014.

Production increased by an average of 10.7% per year in the period under review, reaching €6.5 billion

in 2014.

As indicated in Figure 4, Italy is a net exporter of valves, as its production output exceeds its local

demand. Nevertheless, it is the second-largest market for valves in Europe, with a value of €2.4 billion

in 2014. Local demand had some difficult years (2009–2010), although 2011 proved to be a record year,

with a year-on-year improvement of 76%. It should be noted that the market growth in 2011 was due in

part to growth in demand for valve parts. This illustrates the fact that Italian valve manufacturers

outsource a substantial amount of parts manufacturing to subcontractors.

The Italian market is expected to remain stable or show a slight decline in the next few years, as the

difficult situation in several segments, both in and outside Italy (most notably, the oil and gas sector),

will offer only limited opportunities for market growth.

Although large companies account for more than half of total output, the country has a relatively large

number of small manufacturers. Pentair (formerly Tyco) has a few subsidiaries in Italy (Fasani, Raimondi

Valvole and Vanessa), while other global market leaders with production facilities in Italy include Velan

and Dresser. The leading Italian companies include Valvitalia (a conglomeration of a large number of

small valve manufacturers) and the Bonomi Group (comprising Rubinetterie Breciane Bonomi, Valpres

and Valbia).

Italian valve manufacturers have a strong position in the global oil and gas industry. Approximately 200

Italian companies offer products, systems and services for the transport of fluids in the energy sector,

with 50–70 of them specialising in valves. These companies are concentrated in a large area, stretching

from Varese to Piacenza. Most are medium-sized and large companies. The centre of Italian valve

production is Varezotta.

Macro-economic indicators

Figure 5: Real GDP Italy (2014–2016), % change from previous year

Source: OECD Economic Outlook 96 database

-0,6

-0,4

-0,2

0,0

0,2

0,4

0,6

0,8

1,0

1,2

2014 2015 2016

Tips:

Manufacturers of valve parts can find very good short-term and medium-term subcontracting

opportunities with Italian valve producers.

For exporters of finished valves from developing countries, the cautious market climate is a threat, as

European/Italian valve manufacturers will be making every effort to retain their customers in the

Italian market.

Considering the forecast for 2015 and beyond, pricing is and will continue to be one of the most

important factors influencing competition. Exporters from developing countries who have difficulty

achieving competitive pricing should consider specialising, as competition tends to be less intense in

the market for specialised valves.

CBI | Market Intelligence Product Factsheet Valves in Italy| 8

The major determinant of demand for valves is industrial spending activity, which is stimulated by economic growth.

As indicated in Figure 5, the GDP is expected to exhibit continued growth year on year, following a slight decline in

2014. For the longer term, it will provide a significant base for continued import growth.

The profitability of imports of valves is affected by the €:USD exchange rate, as many valves and valve parts that are

sourced globally are paid for in USD. While the €:USD exchange rate was not expected to surpass 0.80 until 2020,

this occurred in 2015, with the exchange rate even rising above 0.90. This is having a major effect on the price level

of imports. This situation is likely to have a negative impact on the level playing field of European imports paid in USD

relative to local European production, especially if it persists for several years. This would thus also have a negative

impact on the competitive position of exporters from developing countries.

What trends offer opportunities on the Italian market for valves?

The most important trends in the Italian valve sector include the following: Automated valves: Although Italian companies have specialised in expensive automated valves and actuators,

exporters from developing countries find it difficult to enter this market. The expensive automated valves include

technologically advanced automated valves with greater efficiency through advanced predictive and preventative

maintenance abilities, as well as through improved controls involving pneumatic, solenoid, electric, hydraulic or digital

mechanisms. These valves can be used in remote or hazardous environments, as in oil pipelines in the Arctic or

within nuclear power plants. Such specialised products constitute a growing market segment for Italian valve makers,

although they also incur costs in the form of materials research (e.g. plastics, ceramics), product design and testing,

in addition to more sophisticated production methods.

Clean water: In the water and sewerage industry, clean water shortages and environmental legislation will result in

several investments in infrastructure and water-treatment equipment.

Environment: A rising demand for certain types of valves can be seen as a result of the search for energy efficiency

and the restriction of CO2 and NOx emissions (following legislation from the European Union). This has led to the

increased use of innovative production techniques, resulting in greater efficiency and less waste. One of the effects of

this trend is that there has been an increase in demand for certain types of valves. For example, a range of valves

has become more appealing as control valves for petrochemical companies. The main reason is that a range of valves

has lower gland emissions than globe valves do. In addition, one specific range of valves, eccentric plug valves, is

suitable for a very large number of applications. Eccentric plug valves have thus experienced relatively high growth in

demand, especially for control-valve applications in the oil and gas industry.

With which requirements should valves comply in order to be allowed on the Italian

market?

Requirements can be divided into the following categories: (1) musts, which are legal requirements that you must meet in

order to enter the market, and (2) additional requirements, which consist of the relatively common requirements that most

competitors have already implemented (in other words, requirements that you should meet in order to stay abreast of the

market).

A general overview of EU buyer requirements for pipes and process equipment is available on the CBI Market Intelligence

Platform. Additional sources of information on gaining access to the European market include the EU Export Helpdesk and

the ITC Market Access Map.

Tip:

Although GDP growth forecasts are improving, pricing is and will continue to be one of the most

important factors influencing competition. Competitive pricing is essential for exporters from

developing countries planning to enter the European market.

Tips:

Specialised valves provide opportunities for manufacturers from developing countries who are able to

supply high-tech valves or parts for such valves.

Consider focussing on the water and sewerage treatment segment, as it offers the best opportunities

due to its relatively low technical requirements.

The trend towards greater energy efficiency provides opportunities for producers from developing

countries who are able to supply certain types of low-emission valves or parts for such valves.

The CBI document on Trends for Pipes and Process Equipment provides a general overview of trends in

the European industry.

CBI | Market Intelligence Product Factsheet Valves in Italy| 9

Musts

For industrial valves, the most important legal requirements are compliance with the Essential Safety Requirements of (1) the Pressure Equipment Directive (PED) 97/23/EC, and (2) the ATEX Directive 94/9/EC (which applies to valves in potentially explosive atmospheres). Valve parts are not subject to any specific legal requirements for market access. For finished valves, the following legislation applies: The Product Liability Directive states that the European importer is liable for the products put on the European

market. In theory, however, European importers can pass claims along to their producers/exporters.

Valves are subject to the PED directive.

Valves intended for use in potentially explosive atmospheres must comply with the ATEX directive (Directive

94/9/EC).

Other general legislation that must be taken into account includes: Wood packaging materials used for transport (Directive 2005/15/EC): The European Union sets requirements for

wood packaging materials (WPM), including packing cases, boxes, crates, drums, pallets, box pallets and dunnage

(i.e. wood used to wedge and support non-wood cargo).

Another packaging-related directive is the general directive for packaging and packaging waste, which prescribes the

marking of the kind of packaging material used and maximum levels of heavy metals in the packaging material.

Additional requirements

For finished valves, the customer’s main requirements will be related to technical aspects, many of which are covered in the CE or other standards. General standards (e.g. EN558 and EN12982) can serve as a starting point, while other standards apply to specific market segments (e.g. ISO 15761, 10434 and 17292 for gas and oil). Yet other standards apply to specific types of valves (e.g. EN 13709, 13789 and 1349 for globe and control valves and ISO 5996 for cast-iron gate valves). For valve parts, material requirements are the most important customer requirement. The material that is used for valve parts must be covered by an international standard and certificated. The metal used must meet the material standard, which can be stated in an EN10204 Type 3 certificate. This type of certificate is internationally accepted. While the American ASTM standards link material requirements with applications, this is not the case for the European EN standards. Instead, European customers have their own specific requirements, in addition to the EN standards. Such additional requirements from customers can be NDT (non-destructive testing), surface (MT or magnetic testing, PT or penetrant testing) and section (UT or ultrasonic testing and RT or X-ray testing) tests.

Buyers may also have specific requirements relating to the dimension and surface of the valve parts. In practice, these requirements are highly dependent upon the customer and application. In some cases, buyers ask their suppliers to adhere to the EN ISO 8062 standard and, in other cases, they include their specific dimensional and surface requirements in the technical drawing. Finally, many customers are likely to demand that you work according to such general organisational quality systems as ISO 9001 (version 2008) and process control. Some may also demand compliance with ISO 14001 (environmental) and OHSAS 18000 (labour standards).

Tips:

To obtain PED or ATEX certification, valves must be certified by a Notified Body. In some cases, these

notified bodies also offer consultancy services to help manufacturers meet the requirements. Be aware

that notified bodies are often notified for only a part of the conformity assessment procedure, or for

only a specific sector (e.g. electrical equipment).

Consult the European ATEX Guidelines for the Valve Industry published by the European Valves

Committee.

Make sure that your wood packaging material (WPM) qualifies for the European market. If you are not

certain, ask your WPM supplier to confirm and explain this to you. Your WPM supplier should undertake

any further actions required to comply with the Directive. If the supplier is not able to do so, it would

be advisable to select another supplier.

A Certificate of Origin is obligatory; note that it must be validated by a local Chamber of Commerce.

Additional information is available here.

CBI | Market Intelligence Product Factsheet Valves in Italy| 10

Import tariffs

For valves and valve parts, a 2.2% duty is levied on European imports from third countries. Several countries benefit from

a preferential 0% tariff, including Indonesia, Pakistan, Vietnam, the Philippines, Bosnia-Herzegovina and Egypt. The TARIC

database provides additional details relating to Chapter 8481. Note that a Certificate of Origin is required in order to claim a

preferential tariff.

What do the trade channels and interesting market segments for valves look like in Italy?

Valve manufacturers are the most prominent targets in Italy. Producers from developing countries can supply parts to them as subcontractors, in addition to supplying finished products. Producers from developing countries can improve their opportunities by focussing on a few specialised products. Italian manufacturers are also the most important targets for specialised products, and some may be interested in subcontracting a part of their production to low-cost countries. Distributors are also good targets, as they have excellent access to the local market. Additional information is available in the CBI documents on 1) Market Channels and Segments for Pipes and Process Equipment and 2) Competition for Valves. Explanations of the types of prospects are provided below, including a few examples for each type. Resources that can be used for finding prospects are included in the section ‘useful resources’.

Manufacturers

These companies offer good potential for suppliers of valve parts, and possibly for suppliers of some finished valves. Subcontracting offers the best opportunities for specialised products, including special valves or parts thereof (e.g. knife valves). Examples of Italian producers include the following: Calzoni Hydro – manufacturer of a range of valves and pipe-related equipment.

Dafram – manufacturer of an floating range of ball valves.

Enolgas – producer of a wide range of ball valves.

Fratelli Pettinaroli – maker of valves for water-supply, heating and sanitary applications.

Ghipson – maker of butterfly and check valves.

Magival – producer of ball valves.

Orion Valves – manufacturer of three-way ball valves and other types of valves.

Note that this list is not complete, and it is intended only as an illustration of a particular category of companies.

Distributors

Distributors are attractive targets for exporters from developing countries aiming to export large volumes of commodity-type products (e.g. common valves). This is because distributors often buy and/or import commodities in relatively large volumes on a scheduled basis. In most cases, the distributor is also the importer. Distributors often have their own stock, thus explaining why they are also called ‘stockists’. Products must be kept in stock, as they need to be available for urgent deliveries to end-users. Most distributors offer a range of valves and other pipe-related process equipment. Examples include the following: Ital Tecnica – distributor of valves and other pipes and process equipment.

Steeltrade – stockholding distributor of a range of valves and pipe-related equipment.

Tips:

Valves produced for the European market must be designed and manufactured with an emphasis on

low emissions, safety, simplicity of maintenance, ease of operation and, above all, long and reliable

service life.

Additional details are available on the following websites:

o ISO Catalogue - See ‘TC 153’ (Valves) for an overview of ISO standards.

o Search EN norms in the online shop of the British Standards Institution.

o CBI Buyers’ Black Box offers further information on topics that are decisive for buyers when

searching for new suppliers.

Tip:

Exporters from countries subject to a preferential 0% tariff have a slight competitive advantage over

competitors from countries without such preferential tariffs.

CBI | Market Intelligence Product Factsheet Valves in Italy| 11

Varisco – stockholding distributor of a range of valves and pipe-related equipment.

Note that this list is not complete, and it is intended only as an illustration of a particular category of companies. Other distributors are true valve specialists, as they are exclusively specialised in valves. Examples of such specialists include Villa Valvole and MB Valves Service. Note that this list is not complete, and it is intended only as an illustration of a particular category of companies.

Useful resources

Associations, portals, magazines and trade fairs

Federation of the Italian Associations of Mechanical and Engineering Industries – select English and click on ‘members

directory’.

Geofluid – trade fair for technology and equipment for prospecting, extracting and conveying underground fluids, held

in even-numbered year (in October), in Piacenza.

H2O-Accadueo – trade fair for water distribution, treatment and equipment, held every even-numbered year (in

May), in Bologna.

Italian Association for Food Producing, Processing and Preservation Manufacturers – click on ‘associati e produzione’

and ‘Elenco Aziende’.

Italian Association of Valve and Fitting Manufacturers – the site offers news and a company database; click on

‘Aziende associati’ for an overview of members.

Italian Federation of Agents – several matchmaking services are offered; see here.

Reti Idriche & Gas – bimonthly water and gas magazine.

Subfornitura – subcontracting industrial processing fair, held annually (in March) in Parma.

Valveworld – biennial trade fair dedicated to valves, held in December in even-numbered years, in Dusseldorf,

Germany. This is Europe’s annual meeting place for the valve industry.

Water Gas – business portal for Italian gas and water companies, offering news, background information and a

company database.

Miscellaneous

Eurostat – official statistics office of the European Union. Registration is free and provides access to large collections

of data.

Export Helpdesk – information on European trade statistics, tariffs and quotas for developing countries.

ITC International Trade Statistics – registration required.

Kwintessential – provides practical tips on business culture and etiquette.

CBI Market Intelligence

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marketintel@cbi.eu

This survey was compiled for CBI by Globally Cool :: creative solutions for sustainable business,

in collaboration with CBI sector expert Luc Govaerts

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

May 2016